EX-99.1 2 exhibit991earningsreleaseq.htm EXHIBIT 99.1 Exhibit


CAMDEN PROPERTY TRUST ANNOUNCES FIRST QUARTER 2016 OPERATING RESULTS


Houston, TEXAS (April 28, 2016) - Camden Property Trust (NYSE:CPT) today announced operating results for the three months ended March 31, 2016.

“We are pleased to announce recent dispositions of $630 million as part of our capital recycling initiatives and continued steps toward improving the quality of our portfolio,” said Richard J. Campo, Camden’s Chairman and CEO. "Since 2011, we have completed the sale of $2.4 billion of assets and expect total dispositions to approach nearly $3 billion by the end of 2016. Over the same time period, we have grown our average monthly revenue per occupied home by over 50% while lowering the average age of our portfolio.”


Highlights
•
Completed sale of Las Vegas portfolio for $630 million
•
Anticipate $400 - $600 million of additional asset sales
•
Revised 2016 disposition guidance to $1.0 - $1.2 billion in aggregate
•
Assuming the $1.1 billion midpoint of expected dispositions, approximately $425 million is expected to be returned to shareholders in the form of a special dividend, with the remaining $675 million used to retire debt and pre-fund in entirety the $245 million remaining to be spent on our current development pipeline
•
2016 estimated FFO per share revised to $4.55 at the midpoint vs. $4.85 prior as a result of the Company's increased disposition volume
•
2016 same store NOI revised to 4.25% at the midpoint from 4.5% prior driven by higher growth rates on both the completed and planned dispositions


Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Net Income Attributable to Common Shareholders (“EPS”) for the three months ended March 31, 2016 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
 
 
Quarterly
Sequential
 
March 31
 
 
Growth
Growth
Per Diluted Share
2016
2015
 
Same Property Results
1Q16 vs. 1Q15
1Q16 vs. 4Q15
FFO
$1.20
$1.08
 
Revenues
4.9%
0.6%
AFFO
$1.10
$0.96
 
Expenses
2.3%
2.0%
EPS
$0.46
$1.27
 
Net Operating Income ("NOI")
6.3%
(0.2)%

Same Property Results
1Q16

1Q15

4Q15

Occupancy
95.4
%
95.5
%
95.5
%

The Company defines same property communities as communities owned and stabilized as of January 1, 2015, excluding properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.



Development Activity
Construction was completed during the quarter at Camden Chandler located in Chandler, AZ. Lease-up was completed at Camden Flatirons in Denver, CO and Camden Southline (JV) in Charlotte, NC.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)
 
 
Total
Total
CPT %

% Leased

Community Name
Location
Units
Cost
Owned

as of 4/24/2016

Camden Paces
Atlanta, GA
379
$117.4
100
%
89
%
Camden Glendale
Glendale, CA
303
113.3
100
%
77
%
Camden Chandler
Chandler, AZ
380
67.5
100
%
71
%
   TOTAL
 
1,062
$298.2
 
 

Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
CPT %

% Leased

Community Name
Location
Units
Budget
Owned

as of 4/24/2016

Camden Gallery
Charlotte, NC
323
$58.0
100
%
30
%
Camden Victory Park
Dallas, TX
423
82.0
100
%
20
%
The Camden
Los Angeles, CA
287
145.0
100
%
16
%
Camden Lincoln Station
Denver, CO
267
56.0
100
%
 
Camden NoMa II
Washington, DC
405
115.0
100
%
 
Camden Shady Grove
Rockville, MD
457
116.0
100
%
 
Camden McGowen Station
Houston, TX
315
90.0
100
%
 
   TOTAL
 
2,477
$662.0
 
 

Acquisition/Disposition Activity
During the quarter the Company acquired 2.0 acres of land in Charlotte, NC for $4.1 million and sold 6.3 acres of land in Tampa, FL for $2.2 million. Subsequent to quarter-end, Camden sold its Las Vegas portfolio, comprised of 15 operating communities with 4,918 apartment homes, a retail center, and approximately 19.6 acres of undeveloped land for $630 million. The Company is also marketing several additional communities for sale and expects these future sales to total $400 to $600 million.

Earnings Guidance
Camden updated its earnings guidance for 2016 based on its current and expected views of the apartment market and general economic conditions, and its revised expectations for $1.0 to $1.2 billion of dispositions during 2016.

Guidance for second quarter 2016 and full-year 2016 is detailed below.
Per Diluted Share
2Q16
2016
FFO
$1.13 - $1.17
$4.45 - $4.65
EPS
$4.60 - $4.64
$5.62 - $5.82
Same Property Growth
2016 Range
2016 Midpoint
Revenues
3.60% - 4.60%
4.10%
Expenses
3.25% - 4.25%
3.75%
NOI
3.50% - 5.00%
4.25%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2016 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.


Special Dividend
Camden anticipates declaring a special dividend in 2016. Provided all planned dispositions are completed as forecasted, the special dividend is anticipated to total $4.25 to $5.25 per share. The company expects to pay approximately 90% of the dividend in the third quarter of 2016, and the remainder in early 2017.

Conference Call
The Company will hold a conference call on Friday, April 29, 2016 at 11:00 a.m. Central Time to review its first quarter 2016 results and discuss its outlook for future performance. To participate in the call, please dial (888) 317-6003 (Domestic) or (412) 317-6061 (International) by 10:50 a.m. Central Time and enter passcode: 9433137, or join the live webcast of the conference call by accessing the Investors section of the Company’s website at camdenliving.com. Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787.

Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden
Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 158 properties containing 55,254 apartment homes across the United States. Upon completion of 7 properties under development, the Company’s portfolio will increase to 57,731 apartment homes in 165 properties. Camden was recently named by FORTUNE® Magazine for the ninth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #9.

For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.








 
 
 
CAMDEN
 
OPERATING RESULTS
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)
 
Three Months Ended March 31,
 
2016
2015
OPERATING DATA
 
 
Property revenues
 
 
Rental revenues

$187,119


$175,220

Other property revenues
30,476

26,388

Total property revenues
217,595

201,608

 
 
 
Property expenses
 
 
Property operating and maintenance
50,269

48,851

Real estate taxes
26,880

24,677

Total property expenses
77,149

73,528

 
 
 
Non-property income
 
 
Fee and asset management
1,765

1,563

Interest and other income
224

60

Income on deferred compensation plans
63

1,864

Total non-property income
2,052

3,487

 
 
 
Other expenses
 
 
Property management
7,140

5,792

Fee and asset management
952

1,076

General and administrative
12,223

9,748

Interest (a)
23,790

25,052

Depreciation and amortization
62,091

57,984

Expense on deferred compensation plans
63

1,864

Total other expenses
106,259

101,516

 
 
 
Gain on sale of operating properties, including land
443

85,192

Equity in income of joint ventures
1,497

1,382

Income from continuing operations before income taxes
38,179

116,625

Income tax expense
(315
)
(429
)
Income from continuing operations
37,864

116,196

Income from discontinued operations
5,076

4,869

Net income
42,940

121,065

Less income allocated to non-controlling interests from continuing operations
(1,210
)
(5,466
)
Net income attributable to common shareholders

$41,730


$115,599

 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
Net income
$42,940
$121,065
Other comprehensive income
 
 
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
32

37

Comprehensive income
42,972

121,102

Less income allocated to non-controlling interests from continuing operations
(1,210
)
(5,466
)
Comprehensive income attributable to common shareholders

$41,762


$115,636

 
 
 
PER SHARE DATA
 
 
 
 
 
Total earnings per common share - basic

$0.46


$1.29

Total earnings per common share - diluted
0.46

1.27

Earnings per share from continuing operations - basic
0.41

1.23

Earnings per share from continuing operations - diluted
0.41

1.22

 
 
 
Weighted average number of common shares outstanding:
 
 
     Basic
89,344

88,987

     Diluted
90,509

90,464


(a) Prior period has been changed to reflect the adoption of ASU 2015-03 (as supplemented by ASU 2015-15) at December 31, 2015, which required retrospective application.







Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.




 
 
 
CAMDEN
 
FUNDS FROM OPERATIONS
 
 
(In thousands, except per share and property data amounts)
 
 
 
(Unaudited)
 
 
Three Months Ended March 31,
 
 
2016
2015
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
Net income attributable to common shareholders
 

$41,730


$115,599

 Real estate depreciation and amortization
 
60,485

56,459

 Real estate depreciation from discontinued operations
 
4,327

3,904

 Adjustments for unconsolidated joint ventures
 
2,358

2,245

 Income allocated to non-controlling interests
 
1,210

5,466

 Gain on sale of operating properties, net of tax
 
—

(85,145
)
     Funds from operations
 

$110,110


$98,528

 
 
 
 
     Less: recurring capitalized expenditures (a)
 
(9,294
)
(10,644
)
 
 
 
 
     Adjusted funds from operations - diluted
 

$100,816


$87,884

 
 
 
 
PER SHARE DATA
 
 
 
Funds from operations - diluted
 

$1.20


$1.08

Adjusted funds from operations - diluted
 
1.10

0.96

Distributions declared per common share
 
0.75

0.70

 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
FFO/AFFO - diluted
 
91,593

91,275

 
 
 
 
PROPERTY DATA
 
 
 
Total operating properties (end of period) (b)
 
173

168

Total operating apartment homes in operating properties (end of period) (b)
 
60,172

58,446

Total operating apartment homes (weighted average)
 
52,552

51,558

Total operating apartment homes - excluding discontinued operations (weighted average)
 
47,634

46,640


(a) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(b) Includes joint ventures and properties held for sale.

































Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.




 
 
 
CAMDEN
 
BALANCE SHEET
 
 
(In thousands)
 
 
 
(Unaudited)
 
 
Mar 31,
2016

Dec 31,
2015

Sep 30,
2015

Jun 30,
2015

Mar 31,
2015

 
ASSETS
 
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
 
Land

$998,519


$989,247


$990,035


$975,211


$953,246

 
Buildings and improvements
5,978,843

5,911,432

5,890,751

5,769,476

5,618,341

 
 
6,977,362

6,900,679

6,880,786

6,744,687

6,571,587

 
Accumulated depreciation
(1,841,107
)
(1,780,694
)
(1,730,929
)
(1,671,189
)
(1,613,193
)
 
Net operating real estate assets
5,136,255

5,119,985

5,149,857

5,073,498

4,958,394

 
Properties under development, including land (a)
489,730

486,918

439,777

484,663

515,743

 
Investments in joint ventures
32,568

33,698

34,705

35,731

36,526

 
Properties held for sale (a)
238,417

239,063

237,635

238,640

239,031

 
Total real estate assets
5,896,970

5,879,664

5,861,974

5,832,532

5,749,694

 
Accounts receivable – affiliates
24,011

25,100

25,053

25,855

25,652

 
Other assets, net (b)
107,161

116,260

118,985

108,220

109,937

 
Cash and cash equivalents
6,935

10,617

10,375

16,508

174,353

 
Restricted cash
5,378

5,971

6,126

5,791

5,034

 
Total assets
$6,040,455
$6,037,612
$6,022,513
$5,988,906
$6,064,670
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
Unsecured
$1,866,502
$1,824,930
$1,803,360
$1,761,793
$1,829,146
 
Secured
899,315

899,757

900,472

901,032

901,582

 
Accounts payable and accrued expenses
140,991

133,353

131,532

128,532

134,438

 
Accrued real estate taxes
25,499

45,223

57,642

43,905

23,269

 
Distributions payable
69,020

64,275

64,276

64,253

64,261

 
Other liabilities (c)
86,423

97,814

96,679

100,515

102,163

 
Total liabilities
3,087,750

3,065,352

3,053,961

3,000,030

3,054,859

 
 
 
 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
Non-qualified deferred compensation share awards
88,550

79,364

72,316

69,791

69,902

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
Common shares of beneficial interest
975

976

976

976

976

 
Additional paid-in capital
3,658,372

3,662,864

3,660,482

3,657,537

3,656,105

 
Distributions in excess of net income attributable to common shareholders
(491,275
)
(458,577
)
(452,257
)
(426,614
)
(403,518
)
 
Treasury shares, at cost
(378,032
)
(386,793
)
(387,114
)
(387,172
)
(388,181
)
 
Accumulated other comprehensive loss (d)
(1,881
)
(1,913
)
(2,307
)
(2,345
)
(2,382
)
 
Total common equity
2,788,159

2,816,557

2,819,780

2,842,382

2,863,000

 
Non-controlling interests
75,996

76,339

76,456

76,703

76,909

 
Total equity
2,864,155

2,892,896

2,896,236

2,919,085

2,939,909

 
Total liabilities and equity

$6,040,455


$6,037,612


$6,022,513


$5,988,906


$6,064,670

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) All prior periods presented have been changed to present the 15 operating properties, 19.6 acres of land, and retail center located in Las Vegas, Nevada, which were classified as held for sale at March 31, 2016 and subsequently sold on April 26, 2016. (See page 18 for additional information relating to this sale).
 
 
 
 
 
 
 
 
 
(b) Includes net deferred charges of:

$2,600


$2,851


$3,077


$59


$43

 
 
 
 
 
 
 
 
(c) Includes deferred revenues of:

$1,797


$1,768


$1,918


$843


$1,728

 
 
 
 
 
 
 
 
(d) Represents the unrealized net loss and unamortized prior service costs on post retirement obligation, and unrealized loss on cash flow hedging activities.





 
 
CAMDEN
 
NON-GAAP FINANCIAL MEASURES
 
 
DEFINITIONS & RECONCILIATIONS
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)

This document contains certain non-GAAP financial measures management believes are useful in evaluating an equity REIT's performance. Camden's definitions and calculations of non-GAAP financial measures may differ from those used by other REITs, and thus may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating performance, or to net cash provided by operating activities as a measure of our liquidity.

FFO
The National Association of Real Estate Investment Trusts (“NAREIT”) currently defines FFO as net income (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")), excluding gains (or losses) associated with previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO
In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:
 
 
Three Months Ended March 31,
 
 
2016
2015
Net income attributable to common shareholders
 

$41,730


$115,599

 Real estate depreciation and amortization
 
60,485

56,459

 Real estate depreciation from discontinued operations
 
4,327

3,904

 Adjustments for unconsolidated joint ventures
 
2,358

2,245

 Income allocated to non-controlling interests
 
1,210

5,466

 Gain on sale of operating properties, net of tax
 
—

(85,145
)
Funds from operations
 

$110,110


$98,528

 
 
 
 
Less: recurring capitalized expenditures
 
(9,294
)
(10,644
)
 
 
 
 
Adjusted funds from operations
 

$100,816


$87,884

 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
EPS diluted
 
90,509

90,464

FFO/AFFO diluted
 
91,593

91,275

 
 
 
 
Total earnings per common share - diluted
 

$0.46


$1.27

FFO per common share - diluted
 

$1.20


$1.08

AFFO per common share - diluted
 

$1.10


$0.96

 
Expected FFO

Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:
 
2Q16

Range
 
2016

Range
 
Low
High
 
Low
High
Expected earnings per common share - diluted

$4.60


$4.64

 

$5.62


$5.82

Expected real estate depreciation and amortization
0.72

0.72

 
2.89

2.89

Expected adjustments for unconsolidated joint ventures
0.02

0.02

 
0.10

0.10

Expected income allocated to non-controlling interests
0.01

0.01

 
0.06

0.06

Estimated (gain) on properties held for sale
(4.22
)
(4.22
)
 
(4.22
)
(4.22
)
Expected FFO per share - diluted

$1.13


$1.17

 

$4.45


$4.65






Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.




 
 
 
CAMDEN
 
NON-GAAP FINANCIAL MEASURES
 
 
DEFINITIONS & RECONCILIATIONS
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)

Net Operating Income (NOI)

NOI is defined by the Company as total property income less property operating and maintenance expenses less real estate taxes. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. A reconciliation of net income attributable to common shareholders to net operating income is provided below:
 
Three months ended March 31,
 
 
2016
2015
 
Net income

$42,940


$121,065

 
Less: Fee and asset management
(1,765
)
(1,563
)
 
Less: Interest and other income
(224
)
(60
)
 
Less: Income on deferred compensation plans
(63
)
(1,864
)
 
Plus: Property management
7,140

5,792

 
Plus: Fee and asset management
952

1,076

 
Plus: General and administrative
12,223

9,748

 
Plus: Interest
23,790

25,052

 
Plus: Depreciation and amortization
62,091

57,984

 
Plus: Expense on deferred compensation plans
63

1,864

 
Less: Gain on sale of operating properties, including land
(443
)
(85,192
)
 
Less: Equity in income of joint ventures
(1,497
)
(1,382
)
 
Plus: Income tax expense
315

429

 
Less: Income from discontinued operations
(5,076
)
(4,869
)
 
Net Operating Income (NOI)

$140,446


$128,080

 
 
 
 
 
"Same Property" Communities

$124,968


$117,511

 
Non-"Same Property" Communities
11,899

8,470

 
Development and Lease-Up Communities
2,734

343

 
Dispositions/Other
845

1,756

 
Net Operating Income (NOI)

$140,446


$128,080

 

EBITDA

EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, net of tax, and income (loss) allocated to non-controlling interests. The Company considers EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. A reconciliation of net income attributable to common shareholders to EBITDA is provided below:
 
Three months ended March 31,
 
 
2016
2015
 
Net income attributable to common shareholders

$41,730


$115,599

 
Plus: Interest
23,790

25,052

 
Plus: Depreciation and amortization
62,091

57,984

 
Plus: Income allocated to non-controlling interests from continuing operations
1,210

5,466

 
Plus: Income tax expense
315

429

 
Plus: Real estate depreciation from discontinued operations
4,327

3,904

 
Less: Gain on sale of operating properties, including land
(443
)
(85,192
)
 
Less: Equity in income of joint ventures
(1,497
)
(1,382
)
 
EBITDA

$131,523


$121,860